JAKARTA (Yosefardi) – Composite index of the Indonesia Stock Exchange (IDX) ended lower 0.3% at 5070 Tuesday (November 4) but trade was volatile. It moved at range of 5070-5090 during the day trading.
Investors opted to sell local stocks on concern over the subsidized fuel price hike.
The government plans to raise the fuel prices this month by as much as Rp2,000-3,000 per litre.
President Joko “Jokowi” Widodo has on Monday (November 3) officially launched the government’s signature welfare programs through the so-called Prosperous Family Card (KKS), the Indonesia Health Card (KIS), and the Indonesia Smart Card (KIP).
This might be meant as a compensation for poor people as the government opts to skip the fuel subsidy.
Regional market also mostly closed in red to tracking Wall Street on concern over the oil price drop which prompt the selloff in energy shares.
Astra International fell 1.45%, Bank Negara Indonesia declined 2.1%, Bumi Resources dropped 4.4%, BW Plantation shed 2.73%, London Sumatra slashed 1.75%, and Perusahaan Gas Negara slipped 1.26%.
While Bank Mandiri gained 1.2%, Jababeka rose 1.85%, Kalbe Farma increased 1.19%, Bank Tabungan Negara hiked 2.68%, and Pakuwon Jati lifted 2.88%.
Nymex’s crude oil dropped 1.43% to US$77.65 per barrel and gold declined 0.38% to US$1,165.30 per ounce. The rupiah weakened further to Rp12,130 against the US dollar.